The Gujarat Authority of Advance Ruling (AAR) ruled that 12% Goods and Service Tax (GST) is chargeable on Sprayer pumps with effect from January 25, 2018.
The applicant M/s. Adarsh Plant Protect Ltd. is engaged in the manufacturing of Sprayer Pumps, Adarsh Clean Stove and Adarsh Clean Cook Stove (Community size). They have stated that the sprayer pumps manufactured by them fall under Chapter- 84 having HSN code 8424 and all the sprayer pumps manufactured by them are manually operated except model ANM-516, which is battery operated.
The applicant has submitted that they are collecting GST of 12% on Sprayer Pumps, Adarsh Clean Stove, and Adarsh Clean Cook Stove and paying the same to the Government. They have stated that under the VAT Act, no tax was levied on sprayer pumps as the same was used for agricultural purposes.
They have also stated that the above items are taxable now but the said items are purely used manually for only agriculture purposes, hence the said items should be treated as agriculture implements manually operated and the rate of tax should be NIL.
The applicant sought advance ruling on the issue of what rate of GST is charged on the Sprayer pumps and Stoves.
The two-member bench of Sanjay Saxena and Mohit Agarwal ruled that Applicability of GST rate on the Sprayer pumps would be 18% GST up to January 24, 2018, and 12% GST with effect from January 25, 2018 as per Notification No:01/2017-Central Tax(Rate) dated June 28, 2017 (as amended from time to time) issued under the CGST Act, 2017.
The AAR further ruled that the Applicability of GST rate on the stove would be 12% GST as per Notification No: 01/2017-Central Tax (Rate) dated June 28, 2017, issued under the CGST Act, 2017.
“The aforementioned products of the applicant do not find mention under any of the entries of the exemption notification No.02/2017-Central Tax (Rate) dated 28.06.2017 issued under the CGST Act, 2017,” the AAR said.
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